Advisory Fuel Rates

29 May 2026

New company car advisory fuel rates have been published and will take effect from 1 June 2026. 

The guidance states: 'you can use the previous rates for up to one month from the date the new rates apply'. The rates only apply to employees using a company car.

The advisory fuel rates for journeys undertaken on or after 1 June 2026 are:

Engine size

Petrol

1400cc or less

14p

1401cc - 2000cc

17p

Over 2000cc

26p

 

Engine size

Diesel

1600cc or less

15p

1601cc - 2000cc

17p

Over 2000cc

23p

 

Engine size

LPG

1400cc or less

11p

1401cc - 2000cc

13p

Over 2000cc

21p

HMRC guidance states that the rates only apply when you either:

• reimburse employees for business travel in their company cars
• require employees to repay the cost of fuel used for private travel.

You must not use these rates in any other circumstances.

The Advisory Electricity Rate for fully electric cars is below. Electricity is not a fuel for car fuel benefit purposes.

Advisory Electricity Rate  

Home Charger

7p

Public Charger

15p

If you would like to discuss your company car policy, please contact us.

Internet link: GOV.UK AFR